As we continue to build out the Drops platform, we’re focused on innovating and putting the community at the heart of Drops DAO. Our recently launched veDOP mechanism will ensure the community is given a voice and can vote in the direction of our platform’s future… and, more importantly, receive their share of profits.
One of Drops DAO’s greatest strengths is the flexibility for adding collections. Any NFT collection can be added, allowing us to grow with the metaverse and expand our business to all corners of it. This is made possible by creating isolated lending pools. These pools limit LP (Liquidity Provider) risk to the collection they’re supplying funds for.
Moving forward, to create and deploy these NFT lending pools, we’re establishing a robust listing process that will make our platform more decentralized and benefit the community.
Having more interest pre-launch from within the NFT communities themselves, driven by the ambassadors and their outreach, will ensure more hyped launches going forward.
Listing Process
1. Gathering Interest
To kick off the process, our goal is to bring in NFT community members who want to use their NFT assets as collateral on our platform in order to earn liquidity mining rewards.
Once we’ve received enough interest from users, we’ll select ambassadors from the community to receive an “Ambassador NFT” that will come with 3,000 veDOP voting power — this NFT can only be used for Snapshot votes and cannot be transferred. This is significant because it weaves the NFT community into Drops DAO and aligns our long-term interests together.
2. Create Snapshot Proposal
The next phase is to create a Snapshot proposal in order to start the voting process for listing a new collection. veDOP holders will have the ability to vote yes, no, or abstain — the minimal amount of veDOP required to initiate a proposal is 5,000.
Proposals should include details around the plan and other information such as the estimated quantity of NFTs to be supplied, the number of ETH supplied, etc. If the NFT collection passes the vote and gets approved for a Drops listing, it will be prioritized for deployment.
3. Waitlist Priority Vote
The deployment of new Drops lending pools will be limited to 2 NFT collections every week. In the instance that there are greater than 2 collections in the queue, then a waitlist priority vote will occur.
Voting for the deployment of approved NFT collections will occur every week — once the voting process ends, that collection’s lending pool will go live on Drops the following week. We’ve designed these criteria so that although NFT collections can become approved to receive their own unique lending pools, they’ll still require sufficient votes in order to be in the priority queue for the next listing.
At the start of every new priority vote, all NFT collections begin with 0 votes.
4. Oracle and Pool Deployment
After the waitlist vote is finished, the Drops team will begin deploying the oracle and lending pools for the associated collection. All new lending pool initiatives will begin with emissions set at 0.
In order to properly incentivize users for supplying collateral via their NFTs to the pools, the pool with the most veDOP votes will receive a fee distribution. Every $1 that is supplied will equate to 0.1 veDOP votes — the rate will be adjusted based on market conditions at that point in time. This veDOP incentive will only last for the first week to incentivize participation from NFT collection holders.
5. DOP Inflation Distribution Vote
Each week, there will be an inflation distribution vote that occurs for all listed NFT lending pools. Weekly inflation rewards will be distributed proportionally to voting weights.
Get Involved
This new listing and voting process will all be facilitated through community governance, moving us one step closer towards greater decentralization.
NFT lending pools and collection holders will thrive, as the community will now dictate which pools get listed through veDOP. It’s an exciting time to be a part of Drops DAO, so get involved now and get a piece of the action!
About Drops DAO
Drops DAO provides loans for NFT and DeFi assets, supplying them with much-needed utility.
The protocol uses lending pools that enable any type of NFT asset to be used as collateral — from collectibles and metaverse items to financial NFTs. Users can leverage their idle NFTs and DeFi tokens to obtain loans and earn extra yield.
